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UPDATE: Stifel Nicolaus Downgrades Spirit Realty Capital to Hold on Post-Merger Share Run-Up

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Spirit Realty Capital Falls 2% On Share Upsize Offering

Stifel Nicolaus downgraded Spirit Realty Capital (NYSE: SRC) from Buy to Hold and removed the price target of $18.50.

Stifel Nicolaus commented, "Spirit Realty recently announced plans to merge with non-traded Cole Credit REIT II in an all-stock deal. Although the acquisition alleviates some of Spirits major post-IPO concerns (namely, tenant concentration, lack of scale, levered balance sheet, and higher cost of capital than peers), the deal is not only not accretive to earnings and cash flow, but should make future growth more difficult (due to a larger entity). While we think the deal is a positive for Spirit, the recent share price run-up largely reflects these benefits, and we are downgrading the shares from Buy to Hold."

Spirit Realty Capital closed at $20.11 on Friday.

Latest Ratings for SRC

DateFirmActionFromTo
Apr 2016UBSUpgradesNeutralBuy
Mar 2016OppenheimerUpgradesPerformOutperform
Feb 2016Raymond JamesDowngradesOutperformMarket Perform

View More Analyst Ratings for SRC
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Posted-In: Stifel NicolausAnalyst Color Downgrades Analyst Ratings

 

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